Friedman Industries director buys $28,000 in shares of Investing.com company

In a recent transaction on September 18th, Friedman Industries Incorporated (NYSEAMERICAN:FRD) Director Max Alan Reichenthal bought 2,000 shares of the company’s stock, worth a total of $28,000. The common stock was purchased at a price of $14.00 per share, according to a Form 4 filing with the Securities and Exchange Commission.

This recent purchase by Reichenthal increased his direct ownership in the company to 30,761 shares. The acquisition marks a vote of confidence in the long-term value of Friedman Industries, a company known for its role in the steel, furnace and rolling and finishing industries.

Investors often monitor insider trading because they can provide insight into company performance and management’s view of the company’s prospects. The details of the transaction, including the number of shares bought and the price paid, provide a glimpse into the insider’s perspective on the stock’s valuation.

Friedman Industries has been a mainstay in the steel industry with a history dating back to its incorporation in Texas. The company’s shares are traded on the US NYSE, allowing investors to participate in the company’s performance.

Filing Form 4 provides transparency into company insider dealings, ensuring that shareholders and potential investors have access to critical information regarding the company’s stock movements by its directors and officers.

In other recent news, Friedman Industries declared a cash dividend of $0.04 per share, following the company’s tradition of quarterly cash dividends since its initial public offering in 1972. This payment, which marks its 211th consecutive to be distributed on November 15, 2024, to shareholders of record since October 25, 2024. The company’s Board of Directors, which reviews the dividend policy quarterly, aims to maintain a constant dividend that could increase as financial conditions and operations allow. However, it is important to note that despite Friedman Industries’ consistent history of dividend distribution, there is no guarantee of future dividends as they are subject to the discretion of the Board. These recent developments reflect the company’s continued commitment to its dividend policy, given its financial health, operating results, cash needs and growth plans.

InvestingPro Insights

As Friedman Industries Incorporated (NYSEAMERICAN:FRD) continues to navigate the steel industry, recent data from InvestingPro points to some areas of concern alongside notable achievements. The company saw a decline in revenue, with reported revenue of $493.5 million in the trailing twelve months through Q1 2025, which is a 5.65% decline compared to the previous period. Additionally, quarterly revenue growth for Q1 2025 fell 16.57%, reflecting potential market challenges or operational headwinds.

Despite these revenue challenges, the company has maintained its commitment to shareholder returns, maintaining dividend payments for 52 consecutive years. This consistency is underlined by a dividend yield of 1.16% at the end of the previous year. Investors may also find comfort in the company’s liquidity position, as Friedman Industries’ liquid assets exceed short-term liabilities, suggesting financial stability in meeting its immediate liabilities.

In terms of profitability, InvestingPro Tips highlights that Friedman Industries has been profitable over the past twelve months and has strong returns over the past five years. These elements could be seen as signs of underlying resilience and operational efficiency, despite the pressure seen on gross profit margins, which stood at 12.14% for the trailing twelve months to Q1 2025.

For investors seeking a more comprehensive analysis, InvestingPro provides additional information on Friedman Industries, including valuation metrics and more detailed financial performance data. There are 6 more InvestingPro tips available for Friedman Industries that can be explored to gain a deeper understanding of the company’s financial health and market position.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.